Hi Traders! Today I share with you my NZDCHF technical analysis and forecast post, we do our analysis on the MetaTrader4 platform (MT4). Some very interesting, useful tips and hacks about the MT4 platform could be found here. As we do in every technical analysis post we are going to perform the multi-timeframe technical analysis on this pair in order to find possible trading opportunities. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available! Let’s start our analysis now from the highest timeframe which will be the daily chart here.
NZDCHF D1(Daily) Chart Analysis – Range, Bullish Convergence, ADX Indicator
On the daily chart, the price was moving inside a range which started on 25th February 2021. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which was respecting these two zones so far has currently broken above the top of this range and is holding above it, we may consider this as evidence of bullish pressure. We also have a bullish divergence that has formed between the first low that has formed at 0.62892 and the second low that has formed at 0.62365 based on the MACD indicator. Then the price moved higher and broke above the last high at 0.65035 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as another evidence of bullish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
NZDCHF H4(4 Hours) Chart Analysis – Heikin Ashi Candles, Strong Support Zone
On the H4 chart, we had a strong bullish momentum and the price which was moving higher has broken above a strong resistance zone (which currently acts as a strong support zone for us after the breakout) and is holding above it. Currently it looks like a correction is happening and I expect the price to possibly continue higher further after this correction. Also, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. In addition to this, currently there are no signs opposing this bullish view and I basically expect the price to continue higher further until the strong support zone shown in the image below holds.
Technical Analysis & Forecast Summary
NZDCHF D1(Daily) Chart Analysis
- Range, Bullish Convergence, ADX Indicator
NZDCHF H4(4 Hours) Chart Analysis
- Heikin Ashi Candles, Strong Support Zone
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
